TC Transcontinental sells packaging division for US$95M

USA – TC Transcontinental has divested its industrial packaging division to Hood Packaging in a US$95 million transaction, pending working capital adjustments.

The deal includes TC Transcontinental’s Thomasville, Georgia, facility along with operations in Ontario, California, where approximately 138 employees will transfer to Hood Packaging.

This segment generated around US$50 million in revenue over the last year, as of July 2024. The divestment will enable TC Transcontinental to reduce its debt and increase flexibility for future growth-focused acquisitions.

According to TC Transcontinental President and CEO Thomas Morin, this decision aligns with the company’s strategy, “Industrial packaging is a solid business. However, after operating it for several years, we concluded that it offers few synergies with the rest of our portfolio and is not core to our Packaging Sector’s growth strategy.”

This sentiment is echoed by Hood Packaging, which specializes in industrial packaging, enhancing its portfolio with TC Transcontinental’s assets.

The sale includes Thomasville, US, packaging operations and building, with 138 employees transitioning to Hood Packaging.

In addition, Hood Packaging will acquire the industrial packaging segment of TC Transcontinental’s Ontario, California, plant, which accounts for approximately 15% of that plant’s revenues.

TC Transcontinental Packaging Consumer & Beverage senior vice-president Roop Nangia said, “We sincerely thank all of our talented employees for their contribution, commitment and performance.”

This sale follows TC Transcontinental’s recent acquisition of Multifilm Packaging Corp., a company specializing in high-barrier laminates and aluminum foil for confectionery and snack markets.

With the acquisition, TC Transcontinental gains expertise in cast film extrusion, metallization, and foil printing—capabilities that expand its footprint in the flexible packaging market.

Francois Olivier, President of TC Transcontinental, described the acquisition as an opportunity to deepen its North American market presence and meet growing demand for premium packaging solutions.

The Multifilm acquisition, along with divesting from industrial packaging, reflects TC Transcontinental’s emphasis on expanding its flexible packaging division, which now includes seven production plants and nearly 1,000 employees across North America.

Chris Rogers, Multifilm’s President, expressed optimism about joining TC Transcontinental, highlighting the alignment between the two companies’ strengths and market positions.

These strategic shifts illustrate TC Transcontinental’s focus on expanding high-value, specialized packaging solutions while streamlining its core operations for sustainable growth in the flexible packaging industry.

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